Chapter 16 - Legality and Public Policy

Chapter 16 - Legality and Public Policy - Chapter 16...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 16 – Legality and Public Policy I. General Principles a. Introduction i. An agreement is illegal either when its formation or performance is a crime or a tort or when it is contrary to public policy or unconscionable b. Effect of Illegality i. Ordinarily, an illegal agreement is void 1. Neither party can sue regardless of whether the contract has been performed c. Exceptions to Effect of Illegality i. Protection of One Party 1. When the law that the agreement violates is intended to protect one of the parties, that party may seek relief a. Example, when, in order to protect the public, the law forbids the issuance of securities by certain classes of corporations, a person who has purchased them may recover the money paid ii. Unequal Guilt 1. When the parties are not in pari delicto—equally guilty—the least guilty party is granted relief when public interest is advanced by doing so d. Partial Illegality i. An agreement may involve the performance of several promises, some of
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Chapter 16 - Legality and Public Policy - Chapter 16...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online